Builders starting to see improvement
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Updated: August 13, 2009 12:36 PM
There are growing signs of a turnaround for the Lower Mainland's hard-hit construction industry.
The number of construction jobs in the region jumped 3.3 per cent in July, up for the second month in a row.
There were 116,000 people working in construction in the Lower Mainland-Southwest region in July.
That's up 9.6 per cent since May, a recovery of about half of the jobs lost since the start of the year.
Keith Sashaw, president of the Vancouver Regional Construction Association, is cautious but takes the new numbers as a good sign the recession is turning to recovery.
"I think we're at the bottom of the cycle," he said. "The industry is beginning to get a little optimistic about where we are right now."
Sashsaw said he expects growing stability and a full recovery to be underway by the end of the year or early 2010.
Infrastructure projects now underway are helping boost employment.
Sashaw pointed to work underway on Surrey's new $239-million outpatient hospital and noted plans are advancing to build a new RCMP headquarters nearby.
Home renovations are also helping keep particularly trades workers busy, he said, adding the federal home renovation tax credit is definitely spurring spending.
Greater Vancouver Home Builders' Association CEO Peter Simpson also said renovation work gained momentum.
"We've got some home renovators who are booking jobs well into next year now," he said.
Housing starts continue to run far below last year's pace, but Simpson was optimistic new development will pick up.
Some new single-family projects in Surrey and Coquitlam have sold well, he said.
"That shows some confidence in the marketplace."
The resale market is also vigorous – Greater Vancouver realtors sold more homes in July than ever before in that month.
Home prices have been edging up. The typical detached Metro Vancouver house sold for $711,000 in July, down 5.5 per cent from a year ago, but 10 per cent higher than in January.
Despite the brightening outlook, there's one cloud on the horizon that concerns Simpson.
The province's planned Harmonized Sales Tax (HST) will jack up the cost of new homes, and could deter purchasers and put the brakes on plans for new projects.
"We don't need any impediments as we're starting to see improvement and this has potential to be an impediment," Simpson said.
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